DealBook: Looking for Opportunity Where Few Others Invest

PHNOM PENH, Cambodia — Investors started poking around for deals here five years ago, as the war-torn country began to move past its legacy of genocide and coups. When the global financial crisis struck, Cambodia’s fast-growing economy crashed and the dollars flowing from abroad evaporated.

Douglas Clayton stayed put. In the midst of the crisis, he raised $34 million, starting the first investment fund focused on Cambodia.

“High risk also means the potential for high returns,” said Mr. Clayton, the founder of Leopard Capital.

Persistence can pay in this frontier market of 15 million people. Despite some rocky deals, the fund over all has posted solid gains on several investments, according to Leopard Capital. The three investments sold so far by Leopard have generated average annual returns of 36 percent.

“We got in early and have done well,” said Mr. Clayton, 52.

Building on the experience, Mr. Clayton is expanding into other regions with similar characteristics. This year, Leopard Capital started the first big investment fund in Haiti, backed by economic development organizations like the World Bank’s International Finance Corporation. In coming months, he plans to start portfolios focused on Myanmar, Bangladesh and Mongolia. He also plans the first investment fund for Bhutan, which has been reticent about outside money.

“We are trying to pioneer this investment class,” he said. “We can put money in places it’s never really been, and get good results.”

He will have to tread cautiously. Mr. Clayton is moving into treacherous investment territory, plagued by infrastructure problems, corruption, political instability and weak or nonexistent regulatory leadership. For example, Mongolia’s economy is on shaky ground after a series of political maneuvers left foreign investors nervous.

“We’ve proven ourselves here in Cambodia, and feel we can go anywhere,” Mr. Clayton said.

The potential payoff can be substantial. Some investors can double or triple their capital, according to Kathleen Ng, managing director at the Center for Asia Private Equity Research, which tracks fund performance in the region.

Ms. Ng said that China has been the hottest area for investment in Asia for years, but as returns have peaked, many began looking further afield, to places like Vietnam and Indonesia. Countries like Cambodia, Laos and Bangladesh — all Leopard targets — are just now getting on investors’ radars.

“Frontier markets really attract a different investor,” Ms. Ng said. “For the right fund — and a first mover — you can make a lot of money.” Even now, Ms. Ng notes, Leopard remains one of the few private equity funds focused exclusively on the region.

Still, investors need strong reserves to make money in such far-flung places. Returns can be choppy. Over the last five years, an index that tracks the frontier markets around the world is off nearly 42 percent, according to data from Thomson Reuters.

“On the surface, there is so much opportunity here,” said Nicholas Lazos, an investment manager at Insitor, a fund in Cambodia. “But executing is quite difficult.”

Mr. Clayton knows the challenges, having spent much of his career in Asia,

Originally from Madison, Conn., Mr. Clayton graduated from Cornell in 1982 and then served four years in the Army. While stationed in Korea, he became enamored with Asia.

After leaving the Army in 1986, he moved to Hong Kong and persuaded Sun Hung Kai Securities to give him a job as a trader, despite his lack of experience. “China was just opening up,” he said. “This company wanted some foreigners. I got hired and traded to learn.”

Three years later, he was hired by Kerry Securities to head its investment research in Thailand. In 1999, he opened his own firm in Bangkok, Abacas Equity Partners. The firm specialized in distressed assets, plentiful in Thailand after the Asian currency crisis of 1997.

He made his first trip to Cambodia in 2005, during a period of personal reflection. His first marriage had ended, and he was weary of the frenetic pace in Asian hot spots like Singapore, India, Thailand and Hong Kong.

Cambodia reignited his drive. “It was kind of spooky and scary,” he recalled. Yet he also sensed unique opportunity. “Nobody was here yet. It was really unknown, and exciting.”

He started the Leopard Cambodia Fund in April 2008 with $10 million, mainly from family and friends. Then prospects dried up in the global crisis. Many other firms withdrew from the country.

Mr. Clayton remained committed. Over the next two years, he visited 50 cities around the globe, pitching investment opportunities in Cambodia. He originally aimed for a goal of $100 million for the fund, but scaled back during the global financial crisis. “It was a hard sell,” he said.

Since then, he has invested about $36 million in a dozen companies, placing small bets in various industries. He put $5 million into Acleda Bank, a stake that has soared, and earned double-digit gains on telecoms and utilities in the region.

The money manager has experienced his share of difficulties. The firm took an aggressive stance with Nautisco Seafood, buying debt and forcing a restructuring.

Leopard wound up in court over the deal. The founders charged Leopard with interference, a situation that resulted in big layoffs and an eventual takeover. Leopard denied the allegations, and the suit was eventually dismissed.

Mr. Clayton is applying his experience to investment opportunities across Asia and beyond.

The private equity firm has started the Leopard Haiti Fund, supported by the International Finance Corporation, the Netherlands Development Finance Company and the Multilateral Investment Fund. These three agencies committed $20 million to the fund, which will focus on shifting capital into food processing, tourism, affordable housing and renewable energy.

“This is a big signal to investors looking at Haiti,” said Sergio A. Pombo, an investment officer at the I.F.C.

Mr. Clayton has also looked to the I.F.C. for support in Bangladesh, where Leopard plans to start a $100 million fund. Mr. Clayton compared Bangladesh to neighboring India a few decades ago, with a large, low-cost labor force.

Leopard is also contemplating starting a $15 million to $20 million fund for Bhutan, a former Buddhist kingdom in the Himalayas. Bhutan has no investment funds operating in the country, few industries and only 700,000 people.

Mr. Clayton is most bullish about Myanmar, which is going through major political changes. Largely closed to Western investment by the military regime that has ruled for decades, Myanmar, formerly known as Burma, is suddenly open for business.

“This will be a real core country for Leopard in the future.” He predicted the trajectory will follow other Asian nations in the 1980s to 1990s, only at a more rapid pace. “It really seems full speed ahead.”

Still, he cautioned that challenges remained. Foreign investment laws have only recently been announced, and many industries remain closed. Hotels in the capital of Yangon are packed with business delegations, but many outside investors complain that there are few surefire deals, and corruption is a major worry.

Still, Mr. Clayton is focused on the long-term picture for these frontier markets. “These places can be good for investment,” he said. “You just need to do your research, build good local teams and make the right deals.”

A version of this article appeared in print on 12/27/2012, on page B3 of the NewYork edition with the headline: Looking for Opportunity Where Few Others Invest.

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Creating the Ultimate Housework Workout

Robert Wright for The New York Times

Chris Ely, an English butler, and Carol Johnson, a fitness instructor at Crunch NYC, perfecting a houseworkout.

CAN housework help you live longer? A New York Times blog post by Gretchen Reynolds last month cited research linking vigorous activity, including housework, and longevity. The study, which tracked the death rates of British civil servants, was the latest in a flurry of scientific reports crediting domestic chores with health benefits like a lowered risk for breast and colon cancers. In one piquant study published in 2009, researchers found that couples who spent more hours on housework had sex more frequently (with each other) though presumably not while vacuuming. (The report did not specify.)

Intrigued by science that merged the efforts of a Martha with the results of an Arnold (a buffer buffer?), this reporter challenged a household expert and a fitness authority to create the ultimate housework workout — a houseworkout — in her East Village apartment. Perhaps she could add a few years to her own life while learning some fancy new moves for her Swiffer. Christopher Ely, once a footman at Buckingham Palace, and Brooke Astor’s longtime butler, was appointed cleaner-in-chief. Mr. Ely is a man who approaches what the professionals call household management with the range and depth of an Oxford don. Although he is working on his memoirs (he described his book as a room-by-room primer with anecdotes from his years in service), he was happy enough to put his writing aside for an afternoon. His collaborator was Carol Johnson, a dancer and fitness instructor who develops classes at Crunch NYC, including those based on Broadway musicals like “Legally Blonde” and “Rock of Ages.”

Mr. Ely arrived first, beautifully dressed in dark gray wool pants, a black suit coat and a crisp white shirt with silver cuff links. He cleans house in a white shirt? “I know how to clean it,” he countered, meaning the shirt. When Ms. Johnson appeared (in black spandex and a ruffly white chiffon blouse, which she switched out for a Crunch T-shirt), theory, method and materials were discussed.

“If you’re dreading the laundry,” Ms. Johnson said, “why not create a space where it’s actually fun to do by putting on some music?” If fitness is defined by cardio health, she added, it will be a challenge to create housework that leaves you slightly out of breath. “I’m thinking interval training,” she said. As it happens, one trend in exercise has been workouts that are inspired by real-world chores, or what Rob Morea, a high-end Manhattan trainer, described the other day as “mimicking hard labor activities.” In his NoHo studio, Mr. Morea has clients simulate the actions of construction workers hefting cement bags over their shoulders (Mr. Morea uses sand bags) or pushing a wheelbarrow or chopping wood.

Mr. Ely averred that service — extreme housekeeping — is physically demanding, with sore feet and bad knees the least of its debilitating byproducts. Mr. Ely still suffers from an injury he incurred while carrying a poodle to its mistress over icy front steps in Washington When the inevitable occurred, and Mr. Ely wiped out, he threw the dog to his employer before falling hard on his backside. And the right equipment matters: After two weeks’ employ in an Upper East Side penthouse, he was handed a pair of Reeboks by his new boss, the better to withstand the apartment’s wall-to-wall granite floors. (For cleaning, Mr. Ely wears slippers, deck shoes or socks.)

Mr. Ely, whose talents and expertise are wide-ranging (he can stock a wine cellar, do the flowers, set a silver service, iron like a maestro and clean gutters, as he did once or twice at Holly Hill, Mrs. Astor’s Westchester estate), is a minimalist when it comes to materials. He favors any simple dish detergent as a multipurpose cleaner, along with a little vinegar, for glass, and not much else. “Dish detergent is designed for cutting grease; there’s nothing better,” he said. He’s anti-ammonia, anti-bleach. He said bleach destroys fabric, particularly anything with elastic in it. “Knickers and bleach are a terrible combination,” he said. “I had a boss who thought he had skin cancer. His entire trunk had turned red and itchy.” It seems his underpants were being washed in bleach. (Collective wince.) “It’s horrible stuff.”

As for tools, he likes a cobweb cleaner — this reporter had bought Oxo’s extendable duster, which has a fluffy orange cotton duster that snaps onto a sort of wand, but Mr. Ely prefers the kind that looks like a round chimney brush. (If you live in a house, he also suggests leaving the cobwebs by the front and back doors, so the spiders can eat any mosquitoes coming or going.) Choose a mop with microfiber fronds (he suggested the O Cedar brand) because it dries quickly and doesn’t smell. And a sturdy vacuum. Also, stacks of microfiber cloths or a terry cloth towel ripped up.

But first, to stretch. Ms. Johnson took hold of this reporter’s Bona floor mop (it’s like a Swiffer, but with a reusable washcloth) and Mr. Ely followed along with an old-fashioned string mop. Though Mr. Ely has a kind of loose-limbed elegance, he is not exactly limber. He grimaced as he parroted Ms. Johnson, who used her mop as Gene Kelly did his umbrella, stretching her arms overhead, one by one, twisting from side to side, sucking in her stomach, rising up on tip toes. (Mr. Ely said his old poodle-hurling injury was kicking in.) Ms. Johnson adjusted his chin — “You’re going to hurt yourself if you keep sticking your neck out,” she warned — and Mr. Ely raised a black-socked foot napped with cat hair and chastised this reporter: “Would you look at that?” (The cat had vanished early on, but his “debris,” as Mr. Ely put it, was still very much in evidence. The reporter hung her head. Did she know that cat spit is toxic? Mr. Ely wondered.)

“We’re warming up the spine,” said Ms. Johnson. “Squeeze your abdominals.”

Mr. Ely looked worried: “I don’t think I have abdominals!”

MR. ELY’S technique is to clean a room from top to bottom. That means he begins with the cobweb cleaner, wafting it along ceiling corners, moldings, soffits and, uh, the top of the fridge (major dust harvest there). His form was pretty, like a serve by Roger Federer, if not exactly aerobic. For Mr. Ely kept stopping to lecture this reporter — on condensation; on the basic principles of heat transfer and why one needs to vacuum the refrigerator coils; on the movement of moist air in a kitchen; on floor care, which involved a long story about a Belgian monastery whose inhabitants never washed the kitchen floor; on how to dust the halogen spot lights (use a cotton cloth, not a microfiber one, and make sure the lights are off, and cool).  “I do rabbit on, don’t I?” he said. Ms. Johnson gamely hustled him along, noting that anytime you raise your arms over your head you can raise your heart rate. “What about a balance exercise?” she cajoled, executing a neat series of leg lifts. “That’s good for the butler’s booty!”

Read More..

Creating the Ultimate Housework Workout

Robert Wright for The New York Times

Chris Ely, an English butler, and Carol Johnson, a fitness instructor at Crunch NYC, perfecting a houseworkout.

CAN housework help you live longer? A New York Times blog post by Gretchen Reynolds last month cited research linking vigorous activity, including housework, and longevity. The study, which tracked the death rates of British civil servants, was the latest in a flurry of scientific reports crediting domestic chores with health benefits like a lowered risk for breast and colon cancers. In one piquant study published in 2009, researchers found that couples who spent more hours on housework had sex more frequently (with each other) though presumably not while vacuuming. (The report did not specify.)

Intrigued by science that merged the efforts of a Martha with the results of an Arnold (a buffer buffer?), this reporter challenged a household expert and a fitness authority to create the ultimate housework workout — a houseworkout — in her East Village apartment. Perhaps she could add a few years to her own life while learning some fancy new moves for her Swiffer. Christopher Ely, once a footman at Buckingham Palace, and Brooke Astor’s longtime butler, was appointed cleaner-in-chief. Mr. Ely is a man who approaches what the professionals call household management with the range and depth of an Oxford don. Although he is working on his memoirs (he described his book as a room-by-room primer with anecdotes from his years in service), he was happy enough to put his writing aside for an afternoon. His collaborator was Carol Johnson, a dancer and fitness instructor who develops classes at Crunch NYC, including those based on Broadway musicals like “Legally Blonde” and “Rock of Ages.”

Mr. Ely arrived first, beautifully dressed in dark gray wool pants, a black suit coat and a crisp white shirt with silver cuff links. He cleans house in a white shirt? “I know how to clean it,” he countered, meaning the shirt. When Ms. Johnson appeared (in black spandex and a ruffly white chiffon blouse, which she switched out for a Crunch T-shirt), theory, method and materials were discussed.

“If you’re dreading the laundry,” Ms. Johnson said, “why not create a space where it’s actually fun to do by putting on some music?” If fitness is defined by cardio health, she added, it will be a challenge to create housework that leaves you slightly out of breath. “I’m thinking interval training,” she said. As it happens, one trend in exercise has been workouts that are inspired by real-world chores, or what Rob Morea, a high-end Manhattan trainer, described the other day as “mimicking hard labor activities.” In his NoHo studio, Mr. Morea has clients simulate the actions of construction workers hefting cement bags over their shoulders (Mr. Morea uses sand bags) or pushing a wheelbarrow or chopping wood.

Mr. Ely averred that service — extreme housekeeping — is physically demanding, with sore feet and bad knees the least of its debilitating byproducts. Mr. Ely still suffers from an injury he incurred while carrying a poodle to its mistress over icy front steps in Washington When the inevitable occurred, and Mr. Ely wiped out, he threw the dog to his employer before falling hard on his backside. And the right equipment matters: After two weeks’ employ in an Upper East Side penthouse, he was handed a pair of Reeboks by his new boss, the better to withstand the apartment’s wall-to-wall granite floors. (For cleaning, Mr. Ely wears slippers, deck shoes or socks.)

Mr. Ely, whose talents and expertise are wide-ranging (he can stock a wine cellar, do the flowers, set a silver service, iron like a maestro and clean gutters, as he did once or twice at Holly Hill, Mrs. Astor’s Westchester estate), is a minimalist when it comes to materials. He favors any simple dish detergent as a multipurpose cleaner, along with a little vinegar, for glass, and not much else. “Dish detergent is designed for cutting grease; there’s nothing better,” he said. He’s anti-ammonia, anti-bleach. He said bleach destroys fabric, particularly anything with elastic in it. “Knickers and bleach are a terrible combination,” he said. “I had a boss who thought he had skin cancer. His entire trunk had turned red and itchy.” It seems his underpants were being washed in bleach. (Collective wince.) “It’s horrible stuff.”

As for tools, he likes a cobweb cleaner — this reporter had bought Oxo’s extendable duster, which has a fluffy orange cotton duster that snaps onto a sort of wand, but Mr. Ely prefers the kind that looks like a round chimney brush. (If you live in a house, he also suggests leaving the cobwebs by the front and back doors, so the spiders can eat any mosquitoes coming or going.) Choose a mop with microfiber fronds (he suggested the O Cedar brand) because it dries quickly and doesn’t smell. And a sturdy vacuum. Also, stacks of microfiber cloths or a terry cloth towel ripped up.

But first, to stretch. Ms. Johnson took hold of this reporter’s Bona floor mop (it’s like a Swiffer, but with a reusable washcloth) and Mr. Ely followed along with an old-fashioned string mop. Though Mr. Ely has a kind of loose-limbed elegance, he is not exactly limber. He grimaced as he parroted Ms. Johnson, who used her mop as Gene Kelly did his umbrella, stretching her arms overhead, one by one, twisting from side to side, sucking in her stomach, rising up on tip toes. (Mr. Ely said his old poodle-hurling injury was kicking in.) Ms. Johnson adjusted his chin — “You’re going to hurt yourself if you keep sticking your neck out,” she warned — and Mr. Ely raised a black-socked foot napped with cat hair and chastised this reporter: “Would you look at that?” (The cat had vanished early on, but his “debris,” as Mr. Ely put it, was still very much in evidence. The reporter hung her head. Did she know that cat spit is toxic? Mr. Ely wondered.)

“We’re warming up the spine,” said Ms. Johnson. “Squeeze your abdominals.”

Mr. Ely looked worried: “I don’t think I have abdominals!”

MR. ELY’S technique is to clean a room from top to bottom. That means he begins with the cobweb cleaner, wafting it along ceiling corners, moldings, soffits and, uh, the top of the fridge (major dust harvest there). His form was pretty, like a serve by Roger Federer, if not exactly aerobic. For Mr. Ely kept stopping to lecture this reporter — on condensation; on the basic principles of heat transfer and why one needs to vacuum the refrigerator coils; on the movement of moist air in a kitchen; on floor care, which involved a long story about a Belgian monastery whose inhabitants never washed the kitchen floor; on how to dust the halogen spot lights (use a cotton cloth, not a microfiber one, and make sure the lights are off, and cool).  “I do rabbit on, don’t I?” he said. Ms. Johnson gamely hustled him along, noting that anytime you raise your arms over your head you can raise your heart rate. “What about a balance exercise?” she cajoled, executing a neat series of leg lifts. “That’s good for the butler’s booty!”

Read More..

U.N. Envoy Calls for a Transitional Government in Syria

MOSCOW — The international envoy Lakhdar Brahimi, on a mission to Damascus seeking an end to the escalating civil conflict in Syria, said Thursday that a transitional government should be granted full executive powers until President Bashar al-Assad’s term ends in 2014.

Mr. Brahimi’s remarks to journalists, reported by news agencies, follow intensive talks this week with Mr. Assad and a range of opposition figures.

Over the past month, Mr. Brahimi, as special representative from the United Nations and Arab League, has consulted extensively with both the United States and Russia in hopes of fulfilling of an accord reached in Geneva this summer calling for dialogue between Syria’s government and the opposition.

“The Syrian people seek genuine change,” he said. He emphasized the importance of preserving state institutions and warned that military intervention would “lead to the destruction of the Syrian state” according to Russia’s ITAR-TASS news service.

“There will be no victor in this war,” he said.

As a Syrian government delegation met with Russia’s top diplomats in Moscow, a spokesman for the Russian Foreign Ministry, Aleksandr K. Lukashevich, said there was no specific plan under discussion that would envisage a transitional government. Opposition figures have suggested that Mr. Brahimi presented Mr. Assad with offers either to cede some of his authority or to leave the country, but Mr. Lukashevich denied that. “There was and is no plan, it is not being discussed with Mr. Brahimi or with American colleagues,” he said.

Russia, a key ally of the government in Damascus, has long pointed to the Geneva agreement, which calls for negotiation between the government and the opposition, as the only acceptable basis for resolving the conflict.

But the agreement requires both Mr. Assad’s allies and Syrian opposition forces to agree to negotiate — a long shot, said Dmitri V. Trenin, director of the Carnegie Moscow Center.

Earlier this year, he said, influential policy makers in Moscow favored a process like the one that led to the Dayton accords to end the Bosnian war of the 1990s: “Bring them together, close the door and don’t let them out until they reach an agreement.” He said he had serious doubts that either Moscow or Washington could induce the two sides to sit down at the table.

“Frankly, I see very little leverage that Russia has over Assad,” Mr. Trenin said. “Even if the United States were prepared to lean hard on the opposition, or push them toward some kind of negotiation, I do not see the Gulf states or the Turks backing that move.”

In recent weeks, Mr. Lukashevich said Thursday, Moscow has ratcheted up its diplomacy in an effort to “intensify dialogue, not only with the government but also with the opposition groups.” Top Russian officials met Thursday with Syria’s deputy foreign minister, Faisal al-Meqdad. Mr. Brahimi will have his own meeting with the Russian foreign minister, Sergey V. Lavrov, in Moscow on Saturday.

Mr. Lukashevich said Russia was open to talks with Syria’s national opposition coalition, which has been recognized by many Western governments as representing the Syrian people.

“We are not rejecting this dialogue,” he said. “On the contrary, we are holding it very vigorously with all opposition groups who are also interested in getting better insight into the Russian approach.”

“It is obviously another question when and at what level they will take place,” he said.

Among the widely discussed sticking points for a possible transition plan is what role, if any, Mr. Assad and his allies would play in the process. Among the options being floated this week are an arrangement that would allow him to remain in office for most or all of the rest of his presidential term, which ends in 2014, but transferring much of his authority to a transitional body. A separate question is whether the agreement would allow him to run for re-election in 2014.

Mr. Lukashevich said the Geneva agreement did not establish Mr. Assad’s departure as a precondition for talks. As for Mr. Assad’s ability to run for re-election, he said, Russia had no role in determining this.

“We are not lawyers for this regime,” he said. “We would prefer that the Syrians themselves should determine the form and prospects for their state’s further development, and to get away from the horrible prospect of the collapse of the state along religious lines. So the question is more to the Syrians than to the Russians.”

Ellen Barry reported from Moscow, and Kareem Fahim from Beirut, Lebanon.

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Google Apps Moving Onto Microsoft’s Business Turf

SAN FRANCISCO — It has taken years, but Google seems to be cutting into Microsoft’s stronghold — businesses.

Google’s software for businesses, Google Apps, consists of applications for document writing, collaboration, and text and video communications — all cloud-based, so that none of the software is on an office worker’s computer. Google has been promoting the idea for more than six years, and it seemed that it was going to appeal mostly to small businesses and tech start-ups.

But the notion is catching on with larger enterprises. In the last year Google has scored an impressive string of wins, including at the Swiss drug maker Hoffmann-La Roche, where over 80,000 employees use the package, and at the Interior Department, where 90,000 use it.

One big reason is price. Google charges $50 a year for each person using its product, a price that has not changed since it made its commercial debut, even though Google has added features. In 2012, for example, Google added the ability to work on a computer not connected to the Internet, as well as security and data management that comply with more stringent European standards. That made it much easier to sell the product to multinationals and companies in Europe.

Many companies that sell software over the cloud add features without raising prices, but also break from traditional industry practice by rarely offering discounts from the list price.

Microsoft’s Office suite of software, which does not include e-mail, is installed on a desktop PC or laptop. In 2013, the list price for businesses will be $400 per computer, but many companies pay half that after negotiating a volume deal.

At the same time, Microsoft has built its business on raising prices for extra features and services. The 2013 version of Office, for example, costs up to $50 more than its predecessor.

“Google is getting traction” on Microsoft, said Melissa Webster, an analyst with IDC. “Its ‘good enough’ product has become pretty good. It looks like 2013 is going to be the year for content and collaboration in the cloud.”

Microsoft has also jumped on the office-in-the-cloud trend. In June 2011, it released Office 365, and now offers its software in both a cloud version and a hybrid version that uses cloud computing and conventional servers. Office 365 starts at a list price of $72 a year, per person, and can cost as much as $240 a person annually, in versions that offer many more features and software development capabilities. Microsoft says it offers more than Google for the money, but the product has not won many converts from Google.

In a recent report, Gartner, the information technology research company, called Google “the only strong competitor” to Microsoft in cloud-based business productivity software, though it warned that “enterprise concerns may not be of paramount importance to the search giant.”

Google is tight-lipped about how many people use Google Apps, saying only that in June more than five million businesses were using it, up from four million in late 2011. Almost all these companies are tiny, but in early December Google announced that even companies with fewer than 10 employees, which used to get Google Apps free, would have to pay.

Google’s revenue from Apps, according to a former executive who asked not to be named in order to maintain good relations with Google, amounted to perhaps $1 billion of the $37.9 billion Google earned in 2011.

Shaw Industries, a carpet maker in Dalton, Ga., with about 30,000 employees, switched to Google Apps this year for communication tools like e-mail and videoconferencing. Jim Nielsen, the company’s manager of enterprise technology, calculated that using Google instead of similar Microsoft products would cost, over seven years, about one-thirteenth Microsoft’s price.

Shaw is a subsidiary of Berkshire Hathaway, run by Warren E. Buffett, but the close friendship of Mr. Buffett and Microsoft’s founder, Bill Gates, did not sway Mr. Nielsen. “When you add it up, the numbers are pretty compelling,” he said.

In addition to the lower price, Google has simplicity in pricing. Mr. Nielsen said he had to sort through 11 pricing models to figure out what he would pay Microsoft.

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Recipes for Health: Penne With Mushroom Ragout and Spinach

Andrew Scrivani for The New York Times

Penne with mushroom ragout and spinach.

​​Mushrooms and spinach together is always a match made in heaven. I use a mix of wild and regular white or cremini mushrooms for this, but don’t hesitate to make it if regular mushrooms are all that is available.

 

1/2 ounce (about 1/2 cup) dried porcini mushrooms

2 tablespoons extra virgin olive oil

1/2 medium onion or 2 shallots, chopped

2 garlic cloves, minced

1 pound mixed regular and wild mushrooms or 1 pound regular white or cremini mushrooms, trimmed and cut in thick slices (or torn into smaller pieces, depending on the type of mushroom)

Salt and freshly ground pepper

1/4 cup fruity red wine, such as a Côtes du Rhone or Côtes du Luberon

2 teaspoons chopped fresh thyme or a combination of thyme and rosemary

6 ounces baby spinach or 12 ounces bunch spinach (1 bunch), stemmed and thoroughly cleaned

3/4 pound penne

Freshly grated Parmesan to taste

 

1. Place the dried mushrooms in a Pyrex measuring cup and pour on 2 cups boiling water. Let soak 30 minutes, while you prepare the other ingredients. Place a strainer over a bowl, line it with cheesecloth or paper towels, and drain the mushrooms. Squeeze the mushrooms over the strainer to extract all the flavorful juices. Then rinse the mushrooms, away from the bowl with the soaking liquid, until they are free of sand. Squeeze dry and set aside. If very large, chop coarsely. Measure out 1 cup of the soaking liquid and set aside.

2. Heat the olive oil in a large, heavy, nonstick skillet over medium heat and add the onion or shallots. Cook, stirring often, until tender, about 5 minutes. Turn up the heat to medium-high and add the fresh mushrooms. Cook, stirring often, until they begin to soften and sweat, about 5 minutes. Add the garlic and salt to taste, stir together for about 30 seconds, then add the reconstituted dried mushrooms and the wine and turn the heat to high. Cook, stirring, until the liquid boils down and glazes the mushrooms. Add the herbs and the mushroom soaking liquid. Bring to a simmer, add salt to taste, and cook over medium-high heat, stirring often, until the mushrooms are thoroughly tender and fragrant. Turn off the heat, stir in some freshly ground pepper, taste and adjust salt.

3. Bring a large pot of water to a boil and salt generously. Fill a bowl with ice water. Add the spinach to the boiling water and blanch for 20 seconds only. Remove with a skimmer and transfer to the ice water, then drain and squeeze out water. Chop coarsely and add to the mushrooms. Reheat gently over low heat.

4. Bring the water back to a boil and cook the pasta al dente following the timing suggestions on the package. If there is not much broth in the pan with the mushrooms and spinach, add a ladleful of pasta water. Drain the pasta, toss with the mushrooms and spinach, add Parmesan to taste, and serve at once.

Yield: Serves 4

Advance preparation: The mushroom ragout will keep for 3 or 4 days in the refrigerator and tastes even better the day after you make it.

Nutritional information per serving: 437 calories; 9 grams fat; 1 gram saturated fat; 2 grams polyunsaturated fat; 5 grams monounsaturated fat; 0 milligrams cholesterol; 73 grams carbohydrates; 5 grams dietary fiber; 48 milligrams sodium (does not include salt to taste or Parmesan); 17 grams protein

​

Up Next: Spinach Gnocchi

 

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

Read More..

Recipes for Health: Penne With Mushroom Ragout and Spinach

Andrew Scrivani for The New York Times

Penne with mushroom ragout and spinach.

​​Mushrooms and spinach together is always a match made in heaven. I use a mix of wild and regular white or cremini mushrooms for this, but don’t hesitate to make it if regular mushrooms are all that is available.

 

1/2 ounce (about 1/2 cup) dried porcini mushrooms

2 tablespoons extra virgin olive oil

1/2 medium onion or 2 shallots, chopped

2 garlic cloves, minced

1 pound mixed regular and wild mushrooms or 1 pound regular white or cremini mushrooms, trimmed and cut in thick slices (or torn into smaller pieces, depending on the type of mushroom)

Salt and freshly ground pepper

1/4 cup fruity red wine, such as a Côtes du Rhone or Côtes du Luberon

2 teaspoons chopped fresh thyme or a combination of thyme and rosemary

6 ounces baby spinach or 12 ounces bunch spinach (1 bunch), stemmed and thoroughly cleaned

3/4 pound penne

Freshly grated Parmesan to taste

 

1. Place the dried mushrooms in a Pyrex measuring cup and pour on 2 cups boiling water. Let soak 30 minutes, while you prepare the other ingredients. Place a strainer over a bowl, line it with cheesecloth or paper towels, and drain the mushrooms. Squeeze the mushrooms over the strainer to extract all the flavorful juices. Then rinse the mushrooms, away from the bowl with the soaking liquid, until they are free of sand. Squeeze dry and set aside. If very large, chop coarsely. Measure out 1 cup of the soaking liquid and set aside.

2. Heat the olive oil in a large, heavy, nonstick skillet over medium heat and add the onion or shallots. Cook, stirring often, until tender, about 5 minutes. Turn up the heat to medium-high and add the fresh mushrooms. Cook, stirring often, until they begin to soften and sweat, about 5 minutes. Add the garlic and salt to taste, stir together for about 30 seconds, then add the reconstituted dried mushrooms and the wine and turn the heat to high. Cook, stirring, until the liquid boils down and glazes the mushrooms. Add the herbs and the mushroom soaking liquid. Bring to a simmer, add salt to taste, and cook over medium-high heat, stirring often, until the mushrooms are thoroughly tender and fragrant. Turn off the heat, stir in some freshly ground pepper, taste and adjust salt.

3. Bring a large pot of water to a boil and salt generously. Fill a bowl with ice water. Add the spinach to the boiling water and blanch for 20 seconds only. Remove with a skimmer and transfer to the ice water, then drain and squeeze out water. Chop coarsely and add to the mushrooms. Reheat gently over low heat.

4. Bring the water back to a boil and cook the pasta al dente following the timing suggestions on the package. If there is not much broth in the pan with the mushrooms and spinach, add a ladleful of pasta water. Drain the pasta, toss with the mushrooms and spinach, add Parmesan to taste, and serve at once.

Yield: Serves 4

Advance preparation: The mushroom ragout will keep for 3 or 4 days in the refrigerator and tastes even better the day after you make it.

Nutritional information per serving: 437 calories; 9 grams fat; 1 gram saturated fat; 2 grams polyunsaturated fat; 5 grams monounsaturated fat; 0 milligrams cholesterol; 73 grams carbohydrates; 5 grams dietary fiber; 48 milligrams sodium (does not include salt to taste or Parmesan); 17 grams protein

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Up Next: Spinach Gnocchi

 

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Google Apps Moving Onto Microsoft’s Business Turf

SAN FRANCISCO — It has taken years, but Google seems to be cutting into Microsoft’s stronghold — businesses.

Google’s software for businesses, Google Apps, consists of applications for document writing, collaboration, and text and video communications — all cloud-based, so that none of the software is on an office worker’s computer. Google has been promoting the idea for more than six years, and it seemed that it was going to appeal mostly to small businesses and tech start-ups.

But the notion is catching on with larger enterprises. In the last year Google has scored an impressive string of wins, including at the Swiss drug maker Hoffmann-La Roche, where over 80,000 employees use the package, and at the Interior Department, where 90,000 use it.

One big reason is price. Google charges $50 a year for each person using its product, a price that has not changed since it made its commercial debut, even though Google has added features. In 2012, for example, Google added the ability to work on a computer not connected to the Internet, as well as security and data management that comply with more stringent European standards. That made it much easier to sell the product to multinationals and companies in Europe.

Many companies that sell software over the cloud add features without raising prices, but also break from traditional industry practice by rarely offering discounts from the list price.

Microsoft’s Office suite of software, which does not include e-mail, is installed on a desktop PC or laptop. In 2013, the list price for businesses will be $400 per computer, but many companies pay half that after negotiating a volume deal.

At the same time, Microsoft has built its business on raising prices for extra features and services. The 2013 version of Office, for example, costs up to $50 more than its predecessor.

“Google is getting traction” on Microsoft, said Melissa Webster, an analyst with IDC. “Its ‘good enough’ product has become pretty good. It looks like 2013 is going to be the year for content and collaboration in the cloud.”

Microsoft has also jumped on the office-in-the-cloud trend. In June 2011, it released Office 365, and now offers its software in both a cloud version and a hybrid version that uses cloud computing and conventional servers. Office 365 starts at a list price of $72 a year, per person, and can cost as much as $240 a person annually, in versions that offer many more features and software development capabilities. Microsoft says it offers more than Google for the money, but the product has not won many converts from Google.

In a recent report, Gartner, the information technology research company, called Google “the only strong competitor” to Microsoft in cloud-based business productivity software, though it warned that “enterprise concerns may not be of paramount importance to the search giant.”

Google is tight-lipped about how many people use Google Apps, saying only that in June more than five million businesses were using it, up from four million in late 2011. Almost all these companies are tiny, but in early December Google announced that even companies with fewer than 10 employees, which used to get Google Apps free, would have to pay.

Google’s revenue from Apps, according to a former executive who asked not to be named in order to maintain good relations with Google, amounted to perhaps $1 billion of the $37.9 billion Google earned in 2011.

Shaw Industries, a carpet maker in Dalton, Ga., with about 30,000 employees, switched to Google Apps this year for communication tools like e-mail and videoconferencing. Jim Nielsen, the company’s manager of enterprise technology, calculated that using Google instead of similar Microsoft products would cost, over seven years, about one-thirteenth Microsoft’s price.

Shaw is a subsidiary of Berkshire Hathaway, run by Warren E. Buffett, but the close friendship of Mr. Buffett and Microsoft’s founder, Bill Gates, did not sway Mr. Nielsen. “When you add it up, the numbers are pretty compelling,” he said.

In addition to the lower price, Google has simplicity in pricing. Mr. Nielsen said he had to sort through 11 pricing models to figure out what he would pay Microsoft.

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IHT Rendezvous: IHT Quick Read: Dec. 26

NEWS The Tea Party might not be over, but it’s increasingly clear that the U.S. election last month significantly weakened the movement, which had nearly captured control of the Republican Party through a potent combination of populism and fury. Trip Gabriel reports.

As Russia’s middle class becomes a force in commerce, G.M., Ford, Volkswagen and other automakers have been expanding, or plan to expand, in the country with new factories. Andrew E. Kramer reports.

Whether he stays in Damascus or tries to flee, President Bashar al-Assad has no easy options as Syria plunges deeper into chaos. Anne Barnard and Hwaida Said report from Beirut.

How did something as innocuous as the sugary pink polio vaccine turn into a flash point between Islamic militants and Western “crusaders,” flaring into a confrontation so ugly that Pakistani teenage girls — whose only “offense” is that they are protecting children — are gunned down in the streets? Donald G. McNeil Jr. reports.

ARTS As officials plan to expand the Buddenbrookhaus, a museum devoted to Thomas Mann, the challenge is how to make an author of weighty tomes approachable to coming generations weaned on Twitter messages and status updates. Nicholas Kulish reports from Lübeck, Germany.

On stages large and small, via new plays but also (very much so) the classics, the theater in London proved time and again in 2012 that it matters. Matt Wolf writes.

SPORTS Syd Fischer, an 85-year-old ocean-racing legend in Australia, is taking yet another shot at winning the Rolex Sydney Hobart Yacht Race outright, with his hand on the helm. Christopher Clarey reports.

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News Analysis: Getting Polio Campaigns Back on Track

How in the world did something as innocuous as the sugary pink polio vaccine turn into a flash point between Islamic militants and Western “crusaders,” flaring into a confrontation so ugly that teenage girls — whose only “offense” is that they are protecting children — are gunned down in the streets?

Nine vaccine workers were killed in Pakistan last week in a terrorist campaign that brought the work of 225,000 vaccinators to a standstill. Suspicion fell immediately on factions of the Pakistani Taliban that have threatened vaccinators in the past, accusing them of being American spies.

Polio eradication officials have promised to regroup and try again. But first they must persuade the killers to stop shooting workers and even guarantee safe passage.

That has been done before, notably in Afghanistan in 2007, when Mullah Muhammad Omar, spiritual head of the Afghan Taliban, signed a letter of protection for vaccination teams. But in Pakistan, the killers may be breakaway groups following no one’s rules.

Vaccination efforts are also under threat in other Muslim regions, although not this violently yet.

In Nigeria, another polio-endemic country, the new Islamic militant group Boko Haram has publicly opposed it, although the only killings that the news media have linked to polio were those of two police officers escorting vaccine workers. Boko Haram has killed police officers on other missions, unrelated to polio vaccinations.

In Mali, extremists took over half of the country in May, declaring an Islamic state. Vaccination is not an issue yet, but Mali had polio cases as recently as mid-2011, and the virus sometimes circulates undetected.

Resistance to polio vaccine springs from a combination of fear, often in marginalized ethnic groups, and brutal historical facts that make that fear seem justified. Unless it is countered, and quickly, the backlash threatens the effort to eradicate polio in the three countries where it remains endemic: Pakistan, Afghanistan and Nigeria.

In 1988, long before donors began delivering mosquito nets, measles shots, AIDS pills, condoms, deworming drugs and other Western medical goods to the world’s most remote villages, Rotary International dedicated itself to wiping out polio, and trained teams to deliver the vaccine.

But remote villages are often ruled by chiefs or warlords who are suspicious not only of Western modernity, but of their own governments.

The Nigerian government is currently dominated by Christian Yorubas. More than a decade ago, when word came from the capital that all children must swallow pink drops to protect them against paralysis, Muslim Hausas in the far-off north could be forgiven for reacting the way the fundamentalist Americans of the John Birch Society did in the 1960s when the government in far-off Washington decreed that, for the sake of children’s teeth, all drinking water should have fluoride.

The northerners already had grievances. In 1996, the drug company Pfizer tested its new antibiotic, Trovan, during a meningitis outbreak there. Eleven children died. Although Pfizer still says it was not to blame, the trial had irregularities, and last year the company began making payments to victims.

Other rumors also spring from real events.

In Pakistan, resistance to vaccination, low over all, is concentrated in Pashtun territory along the Afghan border and in Pashtun slums in large cities. Pashtuns are the dominant tribe in Afghanistan but a minority in Pakistan among Punjabis, Sindhis, Baluchis and other ethnic groups. Many are Afghan refugees and are often poor and dismissed as medieval and lawless.

Pakistan’s government is friendly with the United States while the Pashtuns’ territory in border areas has been heavily hit by American Taliban-hunting drones, which sometimes kill whole families.

So, when the Central Intelligence Agency admitted sponsoring a hepatitis vaccination campaign as a ruse to get into a compound in Pakistan to confirm that Osama bin Laden was there, and the White House said it had contemplated wiping out the residence with a drone missile, it was not far-fetched for Taliban leaders to assume that other vaccinators worked for the drone pilots.

Even in friendly areas, the vaccine teams have protocols that look plenty suspicious. If a stranger knocked on a door in Brooklyn, asked how many children under age 5 were at home, offered to medicate them, and then scribbled in chalk on the door how many had accepted and how many refused — well, a parent might worry.

In modern medical surveys — though not necessarily on polio campaigns — teams carry GPS devices so they can find houses again. Drones use GPS coordinates.

The warlords of Waziristan made the connection specific, barring all vaccination there until Predator drones disappeared from the skies.

Dr. Bruce Aylward, a Canadian who is chief of polio eradication for the World Health Organization, expressed his frustration at the time, saying, “They know we don’t have any control over drone strikes.”

The campaign went on elsewhere in Pakistan — until last week.

The fight against polio has been hampered by rumors that the vaccine contains pork or the virus that causes AIDS, or is a plot to sterilize Muslim girls. Even the craziest-sounding rumors have roots in reality.

The AIDS rumor is a direct descendant of Edward Hooper’s 1999 book, “The River,” which posited the theory — since discredited — that H.I.V. emerged when an early polio vaccine supposedly grown in chimpanzee kidney cells contaminated with the simian immunodeficiency virus was tested in the Belgian Congo.

The sterilization claim was allegedly first made on a Nigerian radio station by a Muslim doctor upset that he had been passed over for a government job. The “proof” was supposed to be lab tests showing it contained estrogen, a birth control hormone.

The vaccine virus is grown in a broth of live cells; fetal calf cells are typical. They may be treated with a minute amount of a digestive enzyme, trypsin — one source of which is pig pancreas, which could account for the pork rumor.

In theory, a polio eradicator explained, if a good enough lab tested the vaccine used at the time the rumor started, it might have detected estrogen from the calf’s mother, but it would have been far less estrogen than is in mother’s milk, which is not accused of sterilizing anyone. The trypsin is supposed to be washed out.

In any case, polio vaccine is now bought only from Muslim countries like Indonesia, and Muslim scholars have ruled it halal — the Islamic equivalent of kosher.

Reviving the campaign will mean quelling many rumors. It may also require adding other medical “inducements,” like deworming medicine, mosquito nets or vitamin A, whose immediate benefits are usually more obvious.

But changing mind-sets will be a crucial step, said Dr. Aylward, who likened the shootings of the girls to those of the schoolchildren in Newtown, Conn.

More police involvement — what he called a “bunkerized approach” — would not solve either America’s problem or Pakistan’s, he argued. Instead, average citizens in both countries needed to rise up, reject the twisted thinking of the killers and “generate an understanding in the community that this kind of behavior is not acceptable.”

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